Budget Update (a.k.a To Err is Human)

Yeah, that title should give you a hint of how the budget project is going. First, the good, then, the bad.

Good - I have been keeping all my receipts to track our spending.
Bad - They are all sitting in a purse, not making much of a difference since they aren't being put                       into our budget spreadsheet.
Good - I have been able to reduce and cancel some expenses to lower our bills.
Bad - I am still not able to cancel one particularly pricey subscription and we are still uncomfortably               tight on money after bills are paid.
Good - We were doing great with curbing our extra spending when we realized how many little things               we buy.
Bad - That lasted for about a week and now, I'm pretty sure we are being as careless and mindless as               before.
Good - (Because there is no way I'm going to end this on a bad note.) I am still determined to master                 this part of our life. I will be going through the last couple weeks of spending tracking and                     renew my efforts.

So, that is our progress in a nutshell. On a more positive note, I will be posting about my latest paint project...finishing the last paint touches on the kitchen walls and trim.

Jumping Right In...A Budgeting Adventure (a.k.a. I have to wear blinders on at Walmart now)

I have never been good with budgets. They felt constricting, confusing, and impossible with the many demands of life. And most of my life, they have not really been necessary (or so I thought). However, life changes, things happen, income fluctuates.

Without writing the length of a novel, suffice it to say that about 5 years ago, we found ourselves out of work, short-selling our home, and moving through three states in a two year period to try to provide for our family. It was hard, frustrating, and resolve-building. With the help and love of family, we got back on our feet and have managed to buy a home in a beautiful area, with our kids settled in and life resuming a normal pace. Needless to say, we don't want to be back in the same situation. And since we are expecting a decrease in income in the next few months, we decided to take action.

Cue the budget.

Without a clue how to start, we visited a friend that is "passionate" (his word, not ours) about budgeting. He has a growing family of a wife and three beautiful kids and, as the sole provider, knows the importance of tracking their money. So, he set us up with some simple excel spreadsheets, a debt reduction spreadsheet, and a book that he orders in bulk and gives away to anyone that would benefit from it,  "The Four Laws of Debt Free Prosperity" by Blaine Harris and Charles Coonradt. The book was published in 1996 but is still as relevant today. Our friend reads it over and over to remind himself why this is all important.

So, armed with a little knowledge, the excel docs, and this book, we headed home and started our adventure. We listed our income, bills, etc. then jotted down our goals.
Goals are essential.
I have never been a big believer in writing down goals but am starting to see the importance of it. The book states that a goal that isn't written down is just a wish. Well, I'm tired of just wishing.

Goals: (a sampling)
1. Become debt-free.
2. Live beneath our income.
3. Save for life's memorable events...missions, weddings, kids' college, family trips.
4. Own a business(es).

We then managed to read about 43 pages into the book before calling it a night after 1 a.m. It is told in first person and is the true account of a man that was so far at the end of his financial rope and hope that he seriously considered doing himself in. It was a chance midnight meeting with a neighbor that started him down the path where he found financial peace and freedom, and a lot more happiness in his family life.

We now have a to-do list, as well:
1. Cancel unnecessary/frivolous/unused subscriptions. (1 down, 2 to go)
2. Negotiate smaller bills/plans with internet and cell phone.
3. Track ALL spending. Keep all receipts and enter into excel doc. (It has begun. This journey began at Walmart this morning.)
4. Monitor bank accounts on a regular basis. I am someone that will not look at the account for long       periods because I know that I will not like what I see.

So, this is just the beginning. I am determined to gain control over this area of our lives.

It will be tough sometimes, especially until we get it down to routine. This morning, I had to walk through Walmart with my eyes glued to the floor until I got to the milk aisle. I also almost stopped on the way home because I saw a sign for a kids' stand selling sodas for $1. Thankfully (?), there wasn't anyone around that I could see, and believe me, I looked. Did I mention that I gave up caffeine again, starting today? I wonder if that will affect anything? :)

I know many others are struggling with money or don't realize yet that this is a necessary thing, so I will do my best to share all I learn with you. But definitely, start with this book. Happy Budgeting!